For many, taking a career break can be necessary for various reasons. Regardless of why you took your leave, returning to the workforce after an extended pause can leave you feeling slightly lost. It takes time to get back up to speed, and, to complicate matters, not all employers understand the implications of such breaks. At the same time, traditional banks may become hesitant to extend credit, even if you’ve demonstrated a long history of financial responsibility.
Fortunately, Filipinos now have access to modern digital finance solutions that can contextualize these breaks appropriately. Leading digital banks like Maya can often draw from alternative data to replace or supplement credit histories, giving you a much better shot at getting the Maya Black Credit Card, a great credit card for travel, after an extended break.
As easy as things are these days, you still have a few responsibilities when you apply for credit after these career pauses. Follow these tried-and-true tips to improve your chances when applying for credit or loans after sabbaticals and other professional leaves:
1) Review Your Credit History
Before starting your next credit card application, look up your credit report for errors or outdated information. Take the time to correct any discrepancies early on to ensure lenders see an accurate picture of your financial behavior. In the Philippines, you can request a copy of your credit report from the Credit Information Corporation (CIC) to get started.
2) Choose the Right Provider and Card for Your Situation
Not all credit cards and banks are created equal. You probably know to look for cards that match your income level, spending habits, and financial goals, but you should also consider if your prospective provider has your demographic in mind.
The Philippines’ top digital banks are now specifically targeting unbanked or underbanked individuals who are actually good risks but are otherwise unable to secure mainstream credit. If you are an experienced professional who was just taking a sabbatical or was pursuing worthwhile personal projects, these financial institutions are going to be more likely to understand, making them better bets for your next card application. This is especially true if you already use their services, as they will already have additional information with which to assess your credit risk.
3) Rebuild Your Credit Gradually
If your credit history also has gaps, then it may be even more challenging to score a good credit card after a long career break. In this case, you may want to start by building your credit gradually, with small, manageable steps.
Taking out small loans, going with a credit line, or opting for a secured credit card are all legitimate ways to get your foot in the door. So long as you follow up with consistent payment behavior, you may soon qualify for an unsecured credit card in relatively short order.
4) Prepare Career and Income Documentation Carefully
In many cases, your career break will cause prospective credit card providers to require proof of income, employment, and identity. This is especially true if you do not have an existing transaction history with them.
For the scenarios listed above, you’ll want to gather your pay slips, tax statements, or alternative income evidence for as far back as you can. If your career break included freelance work or other sources of income, document these activities clearly to showcase your financial stability.
5) Be Transparent About Your Career Break
If asked by a bank representative, clearly explain your career break or sabbatical. Try to keep a level head, as not all bank reps are necessarily familiar with the idea of extended breaks, especially in more traditional institutions. In any case, transparency builds trust and helps lenders evaluate your situation fairly.
6) Consider a Co-Signer or Guarantor if Needed
If your credit history is limited or your income is irregular, getting a co-signer or guarantor with a strong financial background can further increase your chances of approval. This option is especially common for first-time applicants, but it’s also a valid approach for anyone entering the workforce after a break.
7) Avoid Submitting Multiple Applications
Applying for multiple credit cards seems like a good way to improve your odds, but it actually sinks your chances before you’ve even had a chance to really begin. Each submitted application temporarily lowers your score, which means concurrent submissions to different providers tend to result in rejections at all of them.
The best approach is to research and select the card that best fits your needs, then do the right prep work so that you can submit your one solid application with confidence. If you’re getting a card at a digital bank, you might even be able to submit your application through the latest version of their app, avoiding the many hassles that tend to come with traditional paper applications.
Reenter the Credit Game with Certainty
It’s true that returning from a career break or sabbatical has historically triggered some issues with creditors, but this isn’t necessarily as true with today’s digital-first credit card providers. Today’s digital banks tend to look beyond simple credit history to provide a much better weighted assessment of one’s creditworthiness. Compared to traditional institutions, these providers are generally your best bet in the Philippines, as they tend to offer more flexibility when it comes to these situations. As a bonus, these providers generally offer better apps, which makes card management a breeze once you’re actually approved.
Still, it pays to be prepared. Knowing your own credit history, preparing all the necessary documentation, and choosing the right provider makes it so that you can enjoy a successful credit card application even after an extended career break.